Shelby State Bank

What Shelby State Bank does

Shelby State Bank is a privately held, state-chartered community bank founded on November 20, 1931, in Shelby, Michigan, during the Great Depression. The bank has grown to 10 full-service branches serving consumers, small businesses, and agribusiness customers across 5 West Michigan counties: Mason, Muskegon, Oceana, Ottawa, and Newaygo. Headquartered in Shelby with a concentration in Whitehall, the bank employs 51-100 people and operates a relationship-led distribution model in which lending and deposit decisions are made locally by branch-level relationship bankers. The bank maintains approximately $1 of community capital per $1 of original 1931 capitalization language in its history and directly sponsors roughly 150 community organizations annually, anchoring its go-to-market in community engagement rather than mass-market digital marketing.

The core product set spans personal and business deposit accounts (three tiers of Freedom Checking, savings/MMDA, HSA, CDs, IRAs), consumer lending (auto, home equity, personal), mortgage lending (Conventional, FHA, VA, USDA, construction, HELOC), commercial lending (CRE/construction, equipment, operating capital lines, SBA/FSA), and credit cards. Mortgage, commercial, and consumer loan products are originated and underwritten in-house. Credit cards are issued through Elan Financial Services under Visa and Mastercard licenses with zero fraud liability, generating interchange revenue. Wealth management is delivered through SSB Financial Services (Parallel Wealth Management, an LPL Financial affiliated entity), and student loans are offered through a referral partnership with College Ave Student Loans, both producing affiliate/referral revenue streams.

The technology stack is built on partner platforms rather than proprietary infrastructure. Mobile and online banking are powered by Jack Henry's Banno platform, providing iOS and Android apps, card controls, mobile deposit (with a $5,000 daily limit), digital wallet support (Apple Pay, Google Pay, Samsung Pay), and phone banking. Business digital banking adds remote deposit capture, ACH origination, positive pay fraud protection, and business billpay. The bank is FDIC-insured (routing #072411708), compliant with USA PATRIOT Act Section 326 customer identification, and aligned with FinCEN Beneficial Ownership Information reporting effective January 1, 2024. Revenue is generated primarily through net interest income from loan-deposit spread, supplemented by deposit account fees and service charges, interchange on card transactions, and referral revenue from wealth and student loan partnerships.

Name

Shelby State Bank

Legal name

Shelby State Bank

Website

https://shelbybank.com

Company type

Private

Founded year

1931

Operating status

Operating

Headcount range

51–100 employees

Short description

Shelby State Bank is a privately held community bank operating 10 branches across 5 West Michigan counties, providing personal and business deposit accounts, mortgage and commercial lending, and digital banking to consumers, small businesses, and agribusiness customers since 1931.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Commercial Banking (52211)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA)

akta.pro secondary industries

Retail Lending (Personal Loans, Auto, Credit Lines) (FSABAAAB), Branch & In-Person Banking (Teller/ATM Networks) (FSABAAAE), Credit Cards & Revolving Credit (FSABAAAC)

Keywords

• Community banking
• Personal banking
• Commercial lending
• Mortgage lending
• Digital banking

Headquarters

HQ city

Whitehall

HQ country

United States

HQ region

North America

Offices9 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales, Supply Chain

Revenue model

1. Net Interest Income: Traditional community bank revenue generated from the spread between interest earned on loans (mortgages, commercial loans, personal loans, student loans) and interest paid on deposits (checking, savings, CDs, IRAs). This is the primary revenue driver.
2. Deposit Account Fees and Service Charges: Monthly service charges on checking accounts (Freedom, Freedom Plus, Freedom Ultra), paper statement fees, bounce protection/overdraft fees, and other account-related service charges.
3. Commercial Banking Services: Revenue from business checking accounts, commercial real estate loans, equipment financing, operating capital lines, SBA/FSA loans, ACH origination, payroll direct deposit services, and business credit cards.
4. Student Loan Referral Fees: Revenue generated through referral partnership with College Ave Student Loans for student loan originations and refinancing, with the bank directing customers to the partner platform.
5. Credit Card Interchange: Business and personal credit cards are issued through Elan Financial Services; the bank earns interchange income on card transactions.
6. Wealth Management Referral Revenue: Wealth management services are offered through a third-party partner (SSB Financial Services/LPL Financial); the bank earns referral or revenue sharing from these referrals.

Pricing tiers

Go-to-market motion1 record

Distribution channels7 records

Marketing channels5 records

Core offering

Shelby State Bank is a community bank providing personal and business deposit accounts, consumer and commercial loans, and digital banking services through 10 branches across 5 West Michigan counties. Its deposit products span Freedom Checking (Freedom, Freedom Plus, Freedom Ultra tiers), personal and business savings, HSAs, CDs, and IRAs. Lending covers personal loans, conventional/FHA/VA/USDA mortgages, and commercial real estate, equipment, operating capital, and SBA/FSA loans. Digital services include online banking, a Jack Henry-powered mobile app with CardHub card controls, mobile deposit, digital wallets, Remote Deposit Capture, Positive Pay, ACH origination, and phone banking.

Product overview

Shelby State Bank is a community bank offering a comprehensive suite of banking products and digital services across personal, business, and wealth management segments. The core banking platform includes Freedom Checking accounts (Freedom, Freedom Plus, Freedom Ultra tiers), Personal Savings Accounts with tiered interest rates, Health Savings Accounts, CDs and IRAs, and Business Checking and Savings accounts. The bank's digital banking ecosystem centers on Online Banking and Mobile Banking App (powered by Jack Henry) with CardHub for enhanced debit card management. Digital payment capabilities include Digital Wallet integration with Apple Pay, Google Pay, and Samsung Pay. Lending products span Personal Loans (auto, home improvement, debt consolidation), Mortgage Loans (conventional, FHA, VA, USDA, construction), Commercial Loans (real estate, equipment, operating capital, SBA/FSA programs), and Student Loans through College Ave partnership. Business services include Remote Deposit Capture, ACH Origination, Positive Pay, and Business Billpay. Wealth Management is offered through SSB Financial Services partnership. All products are accessible across 10 branch locations serving West Michigan communities.

Differentiator

Problem solved

Functional benefit

Products and services

• Freedom Checking Personal checking account family with three tiers: Freedom (no monthly fee, $300 Overdraft Privilege, no earned interest), Freedom Plus ($8 monthly fee waived with $500 balance, $500 Overdraft Privilege, tiered interest, free money orders and cashier's checks), and Freedom Ultra ($12 monthly fee waived with $2,500 balance, $700 Overdraft Privilege, tiered interest, free specialty checks). Includes free ATM/debit card, no-fee SSB ATM transactions, online and mobile banking, billpay, mobile deposit, telephone banking, and unlimited check writing.
• Personal Savings Accounts Interest-bearing personal savings accounts with tiered interest rates based on average daily balance. Multiple tiers offered including Money Plus/Money Market ($1,000 minimum), Premium Savings ($25,000 minimum), and Christmas/Vacation Club accounts ($5 minimum). Includes free ATM card, no-fee SSB ATM transactions, online and mobile banking, mobile deposit, and telephone banking.
• Health Savings Accounts (HSA) Tax-advantaged health savings accounts for individuals and employees enrolled in HDHPs. Features check writing and a MasterCard debit card, contributions that are tax-deductible, distributions that are tax-free for qualified medical expenses, and management through the SSB mobile app alongside other accounts.
• Certificates of Deposit (CDs) and IRAs Personal and business Certificates of Deposit with terms from 30 days to 60 months, FDIC insured, with early-withdrawal penalties. IRA options include Traditional IRA, Roth IRA, SEP IRA, and Coverdell Education Savings Account. Minimum CD deposit is $1,000.
• Personal Credit Cards Personal credit card program issued through Elan Financial Services under Visa, with options for low rates, cash back, or flexible rewards. Features free online expense reporting, mobile payment capability, and zero fraud liability.
• Online and Mobile Banking 24/7 online banking platform plus the SSB Mobile Banking App for iOS and Android, providing account access, balance and fund transfers, bill payments, customizable alerts, ATM and branch locator, mobile check deposit (daily limit $5,000), spending categorization, and CardHub card controls (card on/off, spending limits by location/merchant/amount/transaction type, travel notifications, instant card activation).
• Digital Wallet Support Contactless payment integration allowing Shelby State Bank debit cards to be added to Apple Pay, Google Pay, and Samsung Pay for tap-to-pay functionality. Verified through iTunes or one-time passcodes, with tokenization so no cardholder information passes through merchant systems and PIN is not visible during transactions.
• Personal Loans Personal consumer loans for automobiles, trucks, boats, RVs, home improvement, debt consolidation, and other needs. Home equity loans and lines of credit also offered. Decisions made locally with quick processing and competitive rates.
• Mortgage Loans Comprehensive residential mortgage lending including Conventional Fixed Rate (15–30 years), Construction Loans, First Time Homebuyer Loans, USDA Rural Development, FHA, Adjustable Rate Mortgages, VA loans, and Home Equity Lines of Credit. Features free pre-qualification and local decision making, with mortgage lenders covering Mason, Newaygo, Oceana, Muskegon, and Ottawa counties.
• Student Loans Undergraduate, graduate, and parent student loans plus student loan refinancing provided through a referral partnership with College Ave Student Loans, with the bank directing customers to the partner platform and providing co-branded educational content covering FAFSA, financial aid letters, loan basics, and repayment planning.
• Business Checking Business checking accounts that include Remote Deposit Capture, Payroll Direct Deposit, ACH Origination through Business Online Banking, and Positive Pay for check fraud protection, plus Bounce Protection for overdraft coverage.
• Business Savings Accounts Interest-bearing savings accounts for businesses with tiered interest on money market balances. Includes free ATM card, no-fee SSB ATM transactions, free online and mobile banking, mobile deposits, telephone banking, and can be linked to checking for overdraft protection.
• Business Credit Cards Business credit card programs issued through Elan Financial Services under Visa and Mastercard with choices for low rates, cash back, or flexible rewards. Features free online expense reporting, no fee for additional employee cards, mobile payment capability, and zero fraud liability.
• Commercial Loans Small business and commercial lending including Commercial Real Estate and Construction, Equipment/Inventory/Materials Financing, Operating Capital lines of credit, and SBA/FSA programs. Decisions made locally by dedicated commercial lenders covering Mason, Muskegon, Oceana, Ottawa, and Newaygo counties.
• Business Online Banking Full-featured business digital banking platform providing 24/7 account access, powerful search tools, fund transfers, payroll deposits, scheduled transactions, customizable reports and alerts, data export, ACH origination, Business Billpay, Remote Deposit Capture, Positive Pay, and support for multiple users with different access levels. Includes a downloadable SSB Business Mobile App from Google Play and the App Store.
• Phone Bank (Audio Response System) Automated 24/7 telephone banking service available at 1-888-327-5875 for account balance inquiries, fund transfers between accounts, loan payments, and PIN changes.
• Wealth Management Wealth management services for personal and business clients, delivered through the bank's partnership with SSB Financial Services (Parallel Wealth Management / LPL Financial), a separate registered investment advisor providing brokerage and advisory services, with account access via an LPL Account View link.

Quantifiable outcome

• Founded 1931, grew to 10 branches across 5 counties while maintaining community-based banking approach
• +2 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

AI capability1 record

Feature8 records

Partnerships

Six partnerships are on record, tiered minor and core.

• College Ave Student LoansminorGTM or Marketing PartnerShelby State Bank has partnered with College Ave Student Loans to offer student loan and refinancing options to customers. The bank directs customers to College Ave's platform for loan applications. The partnership includes co-branded educational content on the bank's website covering FAFSA, financial aid letters, loan basics, and repayment planning.
• Parallel Wealth ManagementminorOthersParallel Wealth Management is listed as a financial affiliate of Shelby State Bank in the privacy policy. This is an affiliated financial company under common ownership or control.
• Lighthouse Title Agency - White Lake, LLCminorOthersLighthouse Title Agency - White Lake, LLC is listed as a financial affiliate of Shelby State Bank in the privacy policy. This is an affiliated financial company under common ownership or control.
• Elan Financial ServicescoreTechnology or IntegrationElan Financial Services is the creditor and issuer of Shelby State Bank's business and personal credit card programs (Visa and Mastercard). Elan provides zero fraud liability protection, 24/7 cardmember service, and processes all credit card transactions. The bank earns interchange income through this partnership.
• LPL FinancialminorOthersSSB Financial Services, powered by LPL Financial, provides wealth management services to Shelby State Bank customers. The bank links to this partner from its Wealth Management page. LPL is a registered investment advisor providing brokerage and advisory services.
• Jack Henry (Banno)coreTechnology or IntegrationShelby State Bank's mobile banking app is powered by Jack Henry's Banno platform. The partnership provides the technology infrastructure for mobile banking, account management, card controls, and digital banking features. The bank references the Banno End User License Agreement in its disclosures.

Scale indicators6 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Independent Bank Corporation: Michigan-headquartered community bank holding company with a comparable branch network across the state. Overlapping geography, similar deposit/lending mix, and equivalent focus on local commercial lending make it one of the closest publicly traded comps for Shelby State Bank.
• Mercantile Bank Corporation: Grand Rapids, MI-based commercial bank serving West and Central Michigan with consumer and commercial banking. Operates in overlapping counties and competes directly for the same small-business and mortgage customers Shelby State Bank targets.
• West Shore Bank: Ludington-based community bank serving Mason and surrounding counties - directly overlapping Shelby State Bank's core market. Competes head-to-head for the same consumer and small-business customers.
• ChoiceOne Financial: Michigan community bank holding company with branches in West Michigan. Similar size and product mix (deposits, mortgage, commercial lending), making it a strong comparable for relative scale and growth.
• North Country Financial / North Country Bank: Michigan community bank with personal and business banking offerings across northern markets. Comparable size and product breadth, competing for similar consumer and commercial customers.
• Old Mission Bank: Traverse City-based Michigan community bank offering personal, business, and mortgage banking. Similar community-bank operating model, geographic focus on smaller Michigan markets, and comparable product depth.
• Lake Michigan Credit Union (LMCU): Grand Rapids-headquartered credit union serving West Michigan with deposit, lending, and digital banking. Largest credit union in Michigan and a direct competitor in Shelby State Bank's footprint for consumer deposits and mortgages.
• Honor Bank: Northern Michigan community bank with a similar community-focused model, deposit and lending product mix, and rural/small-metro branch footprint. Comparable in operating philosophy and product depth.

Broad incumbents

• Fifth Third Bank: National bank with a strong Michigan branch network, competing for consumer and small-business deposits, mortgage, and commercial lending across West Michigan. Sets the bar on digital and product breadth Shelby State Bank must match.
• Huntington Bancshares: Large regional bank with deep Michigan presence including retail and commercial banking. Not a direct competitor on personal relationships at the local level, but competes aggressively on commercial deposits, mortgages, and digital experience in West Michigan.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights5 records

Customer concentration

• LinkedInlinkedin.com/company/the-shelby-state-bank-shelby-mi-

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Shelby State Bank